For the better part of a decade, a San Francisco Bay Area drug ring sold tons of cocaine to the Crips and Bloods street gangs of Los Angeles and funneled millions in drug profits to an arm of the contra guerrillas of Nicaragua run by the Central Intelligence Agency, the San Jose Mercury News has found.
Essentially the claim states that the CIA sold drugs in California to generate untraceable funds to transfer to anti-communist rebels in Nicaragua. The claims were taken seriously enough that in 1996 CIA director John Deutch traveled to LA to confront the claims, but the crowd he addressed remained unconvinced.
Has the CIA sold drugs in the US to fund rebels or to counter the rising influence of gangs?
Is there any evidence to support the claims, or the CIA's position?